Question 1

A compound journal entry affects only two accounts in the transaction.

Accepted Answer

A) True 
 B)False

Question 2

Journalize, in proper form, the following transactions that occurred during November. Omit explanations.
November
5 Barbara invested $20,000 cash and $13,000 of equipment into her new business
10 Paid three months' rent in advance, $3,200
23 Withdrew $800 from the business
24 Billed client for services rendered, $19,500

Accepted Answer

The answer of Journalize, in proper form, the following transactions...

Question 3

The time period for which the income statement is prepared is a(n)

Accepted Answer

A)  calendar year. 
B)  accounting period. 
C)  fiscal period. 
D)  accounting cycle. 
A)  calendar year. 
B)  accounting period. 
C)  fiscal period. 
D)  accounting cycle.

Question 4

Which of the following entries records the owner taking cash for personal use?

Accepted Answer

A)  Wage Expense, debit; Cash, credit. 
B)  Capital, debit; Cash, credit. 
C)  No entry is necessary since the owner owns the cash and the entire business. 
D)  Withdrawals, debit; Cash, credit. 
A)  Wage Expense, debit; Cash, credit. 
B)  Capital, debit; Cash, credit. 
C)  No entry is necessary since the owner owns the cash and the entire business. 
D)  Withdrawals, debit; Cash, credit.

Question 5

The simplest form of a journal is a(n)

Accepted Answer

A)  special journal. 
B)  interim journal. 
C)  accounting journal. 
D)  general journal. 
A)  special journal. 
B)  interim journal. 
C)  accounting journal. 
D)  general journal.

Question 6

If a trial balance is not equal, you should first

Accepted Answer

A)  re-compute the ledger balances. 
B)  trace all postings. 
C)  re-add the trial balance and calculate the difference. 
D)  look for missing transactions. 
A)  re-compute the ledger balances. 
B)  trace all postings. 
C)  re-add the trial balance and calculate the difference. 
D)  look for missing transactions.

Question 7

On July 1, Hill's Construction paid six months' insurance in advance. The journal entry to record this transaction is

Accepted Answer

A)  Debit Prepaid Insurance; Credit Cash. 
B)  Debit Insurance Expense; Credit Cash. 
C)  Debit Cash; Credit Prepaid Insurance. 
D)  Debit Cash; Credit Insurance Expense. 
A)  Debit Prepaid Insurance; Credit Cash. 
B)  Debit Insurance Expense; Credit Cash. 
C)  Debit Cash; Credit Prepaid Insurance. 
D)  Debit Cash; Credit Insurance Expense.

Question 8

Posting is the step in the accounting cycle where errors are most likely to happen.

Accepted Answer

A) True 
 B)False

Question 9

The general journal entry to record the earning of revenue would most commonly include

Accepted Answer

A)  a debit to Accounts Receivable and a credit to Capital. 
B)  a debit to Cash and a credit to Capital. 
C)  a debit to Fees Earned and a credit to Cash. 
D)  a debit to Accounts Receivable and a credit to Fees Earned. 
A)  a debit to Accounts Receivable and a credit to Capital. 
B)  a debit to Cash and a credit to Capital. 
C)  a debit to Fees Earned and a credit to Cash. 
D)  a debit to Accounts Receivable and a credit to Fees Earned.

Question 10

To record rent paid in advance, Prepaid Rent would be debited.

Accepted Answer

A) True 
 B)False

Question 11

Journalizing a transaction with both the debit and the credit for $75 instead of $57 will cause the trial balance to be out of balance.

Accepted Answer

A) True 
 B)False

Question 12

If the trial balance does not balance, which of the following is NOT a method used to detect the error. Checking to see if the difference is

Accepted Answer

A)  10, 100, etc. 
B)  equal to the amount of one of the journal entries. 
C)  equal to the amount of one of the journal entries when the difference is divided by two. 
D)  divisible by 7. 
A)  10, 100, etc. 
B)  equal to the amount of one of the journal entries. 
C)  equal to the amount of one of the journal entries when the difference is divided by two. 
D)  divisible by 7.

Question 13

The first entry for Pat's Car Wash included debits to Cash, Office Equipment, and Building; as well as a credit to Pat Wagner, Capital. This entry would be called a

Accepted Answer

A)  compound entry. 
B)  complicated entry. 
C)  multiple entry. 
D)  final entry. 
A)  compound entry. 
B)  complicated entry. 
C)  multiple entry. 
D)  final entry.

Question 14

A calendar year is any twelve-month period.

Accepted Answer

A) True 
 B)False

Question 15

An addition error could cause the total debit and total credit columns on the trial balance to show a difference of 100.

Accepted Answer

A) True 
 B)False

Question 16

A debit to an expense account was posted to an asset account. This would cause

Accepted Answer

A)  assets to be understated. 
B)  liabilities to be understated. 
C)  capital to be understated. 
D)  expenses to be understated. 
A)  assets to be understated. 
B)  liabilities to be understated. 
C)  capital to be understated. 
D)  expenses to be understated.

Question 17

Define and discuss a calendar year, accounting period, and fiscal year.

Accepted Answer

A calendar year runs from January 1 to D

Question 18

Antonio's catered a reception. The total price was $850. Their customer paid half of the fee in cash and agreed to pay the remainder later. The journal entry to record this transaction is

Accepted Answer

A)  Cash    425 
Accounts Receivable    425
Catering Service Fees    850 
B)  Cash    850 
Accounts Receivable    850 
C)  Cash    850 
Catering Service Fees    850 
D)  Accounts  Receivable   850 
Cash   425
Catering Service Fees    425 
A)  Cash    425 
Accounts Receivable    425
Catering Service Fees    850 
B)  Cash    850 
Accounts Receivable    850 
C)  Cash    850 
Catering Service Fees    850 
D)  Accounts  Receivable   850 
Cash   425
Catering Service Fees    425

Question 19

Jim is having some problems posting to the general ledger. He is not sure if the running balance should be a debit or a credit. Can you give him some advice?

Accepted Answer

If the balance of the ledger account (Dr

Question 20

A journal entry affecting three or more accounts is called a

Accepted Answer

A)  multi-level entry. 
B)  multi-step entry. 
C)  compound entry. 
D)  simple entry. 
A)  multi-level entry. 
B)  multi-step entry. 
C)  compound entry. 
D)  simple entry.

A compound journal entry affects only two accounts in the transaction.

The time period for which the income statement is prepared is a(n)

Which of the following entries records the owner taking cash for personal use?

The simplest form of a journal is a(n)

If a trial balance is not equal, you should first

On July 1, Hill's Construction paid six months' insurance in advance. The journal entry to record this transaction is

Posting is the step in the accounting cycle where errors are most likely to happen.

The general journal entry to record the earning of revenue would most commonly include

To record rent paid in advance, Prepaid Rent would be debited.

Journalizing a transaction with both the debit and the credit for $75 instead of $57 will cause the trial balance to be out of balance.

If the trial balance does not balance, which of the following is NOT a method used to detect the error. Checking to see if the difference is

The first entry for Pat's Car Wash included debits to Cash, Office Equipment, and Building; as well as a credit to Pat Wagner, Capital. This entry would be called a

A calendar year is any twelve-month period.

An addition error could cause the total debit and total credit columns on the trial balance to show a difference of 100.

A debit to an expense account was posted to an asset account. This would cause

Define and discuss a calendar year, accounting period, and fiscal year.

Antonio's catered a reception. The total price was $850. Their customer paid half of the fee in cash and agreed to pay the remainder later. The journal entry to record this transaction is

Jim is having some problems posting to the general ledger. He is not sure if the running balance should be a debit or a credit. Can you give him some advice?

A journal entry affecting three or more accounts is called a

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters

Exam 3: Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

A compound journal entry affects only two accounts in the transaction.

The time period for which the income statement is prepared is a(n)

Which of the following entries records the owner taking cash for personal use?

The simplest form of a journal is a(n)

If a trial balance is not equal, you should first

On July 1, Hill's Construction paid six months' insurance in advance. The journal entry to record this transaction is

Posting is the step in the accounting cycle where errors are most likely to happen.

The general journal entry to record the earning of revenue would most commonly include

To record rent paid in advance, Prepaid Rent would be debited.

Journalizing a transaction with both the debit and the credit for $75 instead of $57 will cause the trial balance to be out of balance.

If the trial balance does not balance, which of the following is NOT a method used to detect the error. Checking to see if the difference is

The first entry for Pat's Car Wash included debits to Cash, Office Equipment, and Building; as well as a credit to Pat Wagner, Capital. This entry would be called a

A calendar year is any twelve-month period.

An addition error could cause the total debit and total credit columns on the trial balance to show a difference of 100.

A debit to an expense account was posted to an asset account. This would cause

Define and discuss a calendar year, accounting period, and fiscal year.

Antonio's catered a reception. The total price was $850. Their customer paid half of the fee in cash and agreed to pay the remainder later. The journal entry to record this transaction is

Jim is having some problems posting to the general ledger. He is not sure if the running balance should be a debit or a credit. Can you give him some advice?

A journal entry affecting three or more accounts is called a

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters